Fidelity Bank N127bn Combined Offer Closes Today

By Aduragbemi Omiyale

The N127 billion combined offer of Fidelity Bank Plc, which commenced on Thursday, June 20, 2024, is closing today, Monday, July 29, 2024.

The exercise has a public offer of N97.5 billion comprising the sale of 10.0 billion ordinary shares at a unit price of N9.75 and a rights issue of N29.6 billion consisting of the issuance of 3.2 billion ordinary shares at a unit price of N9.25 on the basis of one ordinary share for every 10 ordinary shares held as of January 5, 2024.

Fidelity Bank is raising these funds to invest in IT infrastructure, business and regional expansion and product distribution channels, according to details of the exercise released by the lender.

The financial institution has maintained a consistent dividend payout over the past 15 years, even during the most challenging periods for the Nigerian banking industry.

The firm was listed on the Nigerian Exchange (NGX) Limited in 2005, though it commenced operations in 1988 as a Merchant Bank. In 1999, it transformed into a commercial bank and then obtained an international banking licence in 2001.

The company boasts over 8.5 million customers who are serviced across its 251 business offices and various other digital banking channels in Nigeria and the United Kingdom.

Focused on select niche corporate banking sectors as well as Micro, Small and Medium Enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital-based retail banking strategy which has resulted in exponential growth in savings deposits over the last 12 years, with over 57 per cent customer enrolment on its flagship mobile/internet banking products.

Fidelity Bank, under the leadership of Mrs Nneka Onyeali-Ikpe, who turned 60 yesterday, intends to join the exclusive group of tier-1 banks in Nigeria.

The group currently has Zenith Bank, Access Bank, GTBank, UBA, and First Bank, collectively known as ZAGUF by Business Post.